Question

27. If the market wage for electrical engineers in the United States is $50 per hour, then we know that the marginal product of electrical engineers is: Os at least $50 an hour. Ob. exactly $50 an hour. Oc approximately $50 an hour. Od. less than $50 an hour. 28. A college education in the United States: Oa. is not counted as human capital market issues. Ob. does not command the same high wages as it did in the past. Oc. has been shown to earn a wage premium. Od does not lead to any difference in wages as compared with a high school education. 29. In general, wages are determined: Oa. by the skills of the worker, regardless of the country he or she works in. Ob. based on the average wage for all individuals in a particular country. Oc. based on the average marginal product of labor of workers in similar countries. Od by the skills of the worker and the productivity of the entire economy. 30. Human capital labor market issues: Oa. include the skills, knowledge, and experience that people obtain. Ob. refers to workers who do highly repetitive work, which requires little thought and creativity. Oc. refers to a worker in a capital intensive industry. Od. include the equipment, tools, and computers that make workers more productive.

Answer 1

27. a. at least $50 an hour, because otherwise the firms that employ these engineers will make negative contribution on an incremental unit of output

28. c. has been shown to earn a wage premium, according to multiple studies

29. d. by the skills of the workers and the productivity of the entire economy, and that explains the wage differential between countries (e.g., wages are typically higher in properious countries than in developing countries)

30. a. include the skills, knowledge and experience that people obtain (this is self-explanatory)